See how we can help

Get started online

Equity release age limits in the UK

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Oct 23, 2022

Equity release age limits guide in the UK

You’d be mistaken to believe that only retired homeowners can access equity release on an existing mortgage and there are age restrictions of 55 and over for equity release plans held in a property.

This article will discuss how equity can be released from a property you own and we’ll also explain why using a mortgage broker to secure the best deal from equity release providers is the most secure way to get the best equity release schemes.

Get started online


What’s the minimum age to release equity from a lifetime mortgage?

An equity release plan can be applied for starting at 55. Equity release products are lifetime mortgages and home-reversion plans therefore these products are for homeowners who are in retirement or nearing retirement, and an equity release plan is available to those 55 years and older.

We can match you with an equity release provider with no minimum age for releasing equity from your property.

Joint owners are eligible for equity release plans based on the youngest age. If the owner is under 55, they can transfer their equity to other owners. As said previously, equity release age limits are not always required.

The broad meaning of equity in home-related matters refers to the amount of your home you own. It is possible to borrow it from other sources, such as refinance.

We are expert mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

Get your Quote


Is there an upper age limit?

For home reversions and lifetime mortgages, no. These products are intended to help you save money for retirement. They will continue running until you die or enter long-term care. There is no maximum age for equity release.

Some providers have their own rules, however. They can only accept people between 80 and 100 years of age.

If you are below 55 can release equity from your properties in other ways. Some of these options will have age restrictions and limitations.

Seek independent financial advice when you click the link below to speak with an equity release adviser to discuss equity release options.

Get started online


Equity release after the age of 55 years old

If you are 55 years old, you still have the option of remortgaging your outstanding mortgage or home improvement loans, selling, and downsizing provided that you meet all other requirements. You may be eligible for an equity release mortgage and other products.

To be eligible for a lifetime mortgage, you must be within the age limit and own property of at least £70,000. You can take out a lump-sum lifetime mortgage or draw a regular income from equity and there are no monthly payments.

The percentage of equity that you can release will be affected by your age

  • A maximum of 27% can be released from 55
  • A maximum of 40% can be released starting at 65
  • A maximum of 50% can be released from 75
  • A maximum of 60% can be released starting at 85

An enhanced lifetime mortgage is available for applicants with a lower life expectancy. Based on a medical questionnaire, this may enable them to borrow higher than the standard rates if they want to release equity.

Home reversion plans allow you to give up a portion of your equity to a provider to receive a lump sum of cash below market rates. Advisors rarely recommend this type of borrowing as it is unavailable to seniors over 60.

How a broker could help you avoid age restrictions

Whatever route you take to increase your equity in your home’s property, you want the maximum benefit at the lowest cost. There are many options available to you regardless of your age. Each has its advantages and disadvantages.

Contacting an equity release specialist for equity release advice, who can offer later-life lending advice for borrowers of all ages, is your best option.

We can match you up with lifetime mortgage lenders most likely to offer a great deal for someone in your age group.

They will review your financial situation and plans to help you make the right decision for your retirement and help you release equity in your home.

A guide will help you navigate the sometimes complex world of borrowing.

For types of equity release advice and to be introduced to lifetime mortgage lenders regulated by the Financial Conduct Authority, press the link below.

Get started online


Find out how much equity you could release based on your age

Use an online equity release calculator to estimate how much capital you could free from your home. These results are based on your age and your property’s value.

Equity release options for those who are less than 55 years old

There are many ways for 55-year-old homeowners to tap into their equity.

  • Remortgaging You will have to fulfil the provider’s criteria for refinancing to unlock equity. It’s best to wait until the fixed rate agreement has ended to avoid paying an early settlement fee. If your property’s value has increased sufficiently, you might be eligible for a lower loan-to-value (LTV) banding. Although lenders have different age limits, the right lender can help you find deals that will allow you to borrow up to 95 years.
  • Home improvement loans: These can either be a secured loan or an unsecured loan. An unsecured loan can be up to £25,000. You can borrow more if you have a secured loan. In addition, you will get better rates if you plan to do a significant job. To apply for a loan, you must be at least 18 years of age. Most lenders have a 70-75 maximum age limit at the end. You should seek professional advice or find a specialist lender if you are over 75 by the end of your term.
  • Retirement interest-only mortgage: This is similar to lifetime mortgages, but RIO Mortgages can be obtained starting at 50. With monthly contractual payments covering the interest, you can borrow up to 50% of the principal residence’s value. Lenders will need to see proof that you can afford the monthly repayments using your retirement income.
  • You can sell your home. After paying your expenses, you’ll get all equity if you buy a lower-priced home or sell your investment property. There is no limit to selling property.

Match with a broker that specialises in borrowing equity

The current regulation requires that equity release firms offer advice to clients from a financial adviser regulated by the financial conduct authority. While this is fine, it doesn’t mean that you should rely on the guidance provided unless you are certain that it is in your best interest.

Our advisors have full market access and are qualified to advise on equity releases. They will also compare all UK lending markets and recommend the best products for your needs.

Begin your equity release journey at 55 years and older by starting your application online below now.

Get started online